Alphabet’s life science unit Verily has formed an insurance subsidiary, dubbed Coefficient Insurance Company, specialising in employer stop-loss.
Coefficient, which is said to combine health technology solutions with new insurance and payment models, is backed by Swiss Re’s commercial insurance division Swiss Re Corporate Solutions.
Employer stop-loss protects self-funded employers by reimbursing unexpected and large employee health benefit claims above a defined amount.
Coefficient’s precision risk solution is designed to help self-funded employers control cost volatility using a data-driven model.
The new unit will utilise Verily’s core strengths integrating hardware, software and data science along with Swiss Re Corporate Solutions’ distribution capabilities, and risk knowledge in the employer stop-loss market.
Coefficient Verily CEO Andy Conrad said: “Coefficient is aimed at reducing blind spots and providing greater cost control mechanisms for self-funded employers, and we expect that partnering with Swiss Re Corporate Solutions will help us to better develop and distribute our precision risk solution to the employer stop-loss market.
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By GlobalData“Over time, we look forward to integrating Coefficient with Verily’s employer health solutions, including mobile health devices and innovative care management programmes, in order to align payment models with better health outcomes.”
Besides, Swiss Re Corporate Solutions will make a minority investment in Coefficient. The move is subject to regulatory nod.
As part of the investment, Swiss Re Corporate Solutions CEO North America Ivan Gonzalez will gain a seat on the Coefficient board.
Swiss Re Corporate Solutions CEO Andreas Berger said: “Swiss Re Corporate Solutions has long prided itself for being a knowledge-based and data-driven insurer. Today, we’re building on that strong foundation by partnering with Alphabet’s Verily to use advanced technology and data analytics to innovate risk management in the employer stop-loss space.”
Earlier this month, Swiss Re and OneConnect Financial Technology partnered to co-develop a digital end-to-end motor claims handling solution for the European market.
